Company Interviews

Join Joanne Jobin, known as the Queen of the North, as she reflects on the recent success and growth of a mining event in Quebec City. Discover how the conference experienced a remarkable 100% increase in attendance within a year, leading to the announcement of new dates and a larger venue. Joanne shares insights on the upcoming conference, which aims to attract global companies and investors, and discusses her vision for expanding the event's reach while giving back to the industry and supporting women in developing countries. Tune in to learn more about the exciting developments and plans for the future

Interview with Sapan Ghai, Chief Commercial Officer of Sovereign Metals (ASX: SVM)

Our previous interview: https://youtu.be/zUs0Pzn0bRk

Recording date: 19th July 2023

Sovereign Metals, a company dedicated to mineral exploration and development, owns and operates a highly prospective rutile deposit in Malawi, situated near the capital city, Lilongwe. The company has successfully identified a rutile province of global significance within its extensive Malawian land holdings.

In the heart of Malawi lies Kasiya, known for being the world's largest natural rutile deposit and one of the most substantial flake graphite deposits. Sovereign Metals is on a mission to establish a sustainable operation that can supply the high-demand natural rutile and graphite to international markets.

In June 2022, an Expanded Scoping Study (ESS) validated Kasiya's potential to become one of the world’s largest and most cost-effective producers of natural rutile and natural graphite. The study also highlighted that the global warming potential is significantly lower than other existing and planned operations.

Sovereign Metals is currently progressing with an advanced Pre-feasibility Study (PFS) for Kasiya, which will augment the initial findings of the ESS. The results of the PFS are expected to be announced in the coming months.

Recording date: 13th July 2023

What’s been happening

We will soon have two US-listed SMR developers.  Oklo, an Advanced Fission Technology Company announced they will Go Public via a Merger with AltC Acquisition Corp. a special purpose acquisition company chaired by Sam Altman. The combined company will operate as Oklo and is expected to be listed on the New York Stock Exchange under the ticker “OKLO.”

The West has received its first boost in enrichment capacity after Urenco approved an investment to expand enrichment capacity by 0.7M SWU at their US site in New Mexico.

Closer to home (for Bannerman, at least) Rossing Uranium mine in Namibia announced that they would be switching to contract mining rather than owner operator, as part of its plan to extend production out to 2036. Beifang Mining Technology Services Namibia, will start mining Rossing Phase 4 in 2027.  Approximately 400 employees will need to find work with the new mining contractor or other mines.

Winner of the week 

Lotus Resources & A-Cap Energy have agreed to merge via a Scheme of Arrangement, under which Lotus will acquire 100% of A-Cap Shares. A-Cap shareholders will receive 1 new Lotus Share for every 3.54 A-Cap shares held on the Scheme record date. The merger combines two uranium projects both located in Africa – a production-ready asset, Kayelekera, with future large-scale growth asset, Letlhakane.

Bungle of the week

The Bungle this week is a collective award to the various parties around the world who are gaining leverage by serving up anti-science fear about the release of Tritium water from Fukushima.  This ranges from the usual tired old suspects (anti-nuclear types who long ago forewent any respect for science) to Korean trade unionists. 

This is despite an IAEA safety review concluding that Japan’s plan to release treated water stored at the Fukushima Daiichi nuclear power station into the sea are consistent with IAEA Safety Standards.

However, there is a serious side to this bungle as the hysteria may be used as a diplomatic tool by the Chinese, who are not terribly comfortable with the warming of diplomatic relations between Seoul and Tokyo.

Question of the week

‘What do you make of CNUC going back into Niger?’

Tweet of the week

https://twitter.com/fuecks/status/1678349409157775360?s=20

The English translation of his thread follows:

Dear people, I was a (rather active) nuclear opponent for decades. Now it's time to take note of a few facts: No other country shut down its nuclear power plants prematurely in the middle of the climate and energy crisis. The trend is towards extending the term./2

Numerous industrialized countries see nuclear power & renewables as complementary. Massive investments are again being made in R&D for the further development of nuclear energy. Whether this will lead to a new wave of investment remains to be seen. /3

There are still good reasons to decide against nuclear power. But this path is also associated with high costs and risks. Instead of praying down old certainties, we should re-evaluate things. The head is round so that thinking can change direction. /4

Addendum: I am well aware that the share of nuclear power in global electricity production is falling while the expansion of renewable energy is growing exponentially. Nevertheless, in view of climate change, we chose the wrong order with "nuclear phase-out first". /5

The primary goal must be to phase out coal, oil and natural gas. What complementary role nuclear energy will play in a climate-neutral energy system is an open question. In the EU + other industrialized countries, a combination of sun, wind, hydropower + nuclear power is emerging. /6

Moonshots & Fizzers

Will Canada become global leaders in Nuclear Energy? 

In the latest pro-nuclear development in Canada, the Ontario government announced support to advance the long-term planning and consultation work required to explore nuclear expansion options on the Bruce Power site.  It intends to create the largest nuclear power plant in the world with the addition of up to 4.8GWe to the plant’s already installed 6.2GWe capacity.

For the record, Canada is already a leader in many respects.  The only risk of a fizzer is from a relatively similar country and economy that seems to be going in precisely the opposite direction: Australia.

Recording date: 12th July 2023

Nickel prices hanging in similar $20,500 - $21,000 range.  LME Inventories after bump up showing decline again at very low levels - 40,000 tonnes

Indonesia Investment Minister Bahlil Lahadalia on Friday gave the latest updates on Indonesia’s proposal for a global nickel cartel, saying that it has had intense talks with some unnamed countries. Resource-rich Indonesia has been proposing a group of nickel-producing countries that operates in a similar manner to the Organization of the Petroleum Exporting Countries (Opec). The Opec says it aims to coordinate the petroleum policies of its member states and keep the oil markets stable. And Indonesia wants to see a similar group for nickel, which is a key ingredient for electric vehicle (EV) batteries. "There are three countries whom we already have been intensely communicating with," Bahlil told reporters in Jakarta on Friday, commenting on the progress of the Opec-style nickel group. The minister, however, refused to disclose the name of the said countries. When asked about their initial response to the plan, Bahlil said: "[they thought] it was a great idea, but we still need to work on the details of the proposal." The Corruption Eradication Commission (KPK) recently revealed that about 5.3 million tonnes of nickel ore from Indonesia were sent illegally to China from January 2020 to June 2022.

Big couple of weeks for Ardea Resources

Non-binding MOU signed with a Japanese Consortium consisting of Sumitomo Metal Mining, Mitsubishi Corporation and Mitsui & Co. to develop the Kalgoorlie Nickel Project - Goongarrie Hub.  SMM strength is HPAL processing so logical partner for this project and best positioned for success outside of Indonesia

Ardea Resources Kalgoorlie Nickel Project global Mineral Resource Estimate (using a 0.5% Ni cut-off grade) now stands at 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt of contained nickel and 386kt of contained cobalt.  Total resource contains over 6 million tonnes of nickel. This is Australian laterite different than what you see in tropical areas like Indonesia.

Mining optimisation studies have projected production of approximately 30,000t of nickel and 2,000t of cobalt per year for more than 40 years.  Capital cost is A$3.1 billion.  The project generates Post-tax NPV7 of A$4,980M and IRR of 23%,  Average Annual EBITA of A$800M, Project pay back within 3.1 years Direct cash cost after Co by products of US$5,763/t Ni in MHP over life of mine. Metal Prices were $US25,000 for nickel, $60,000 for cobalt. Nice to see but a little on high side – cobalt will be challenged by all of the HPAL capacity coming online before nickel as ratio of production (roughly 10:1 is less than half total supply of  c.20:1

A well-known former Sudbury mining executive is back in the news and is taking on a new role as chair of the newly formed Energy Transition Metals Board with Vale Base Metals, which calls itself one of the world's largest producers of responsibly-sourced nickel, copper, cobalt and platinum group metals. Mark Cutifani was previously chief operating officer (COO) at CVRD Inco, but he left Sudbury in 2007 to become chief executive officer (CEO) of AngloGold Ashanti, and then became CEO of mining giant Anglo American, one of the largest mining companies on the planet.  
Poseidon Nickel – focus has been at Silver Swan / Black Swan – now on its way.  They also had past producing mines at another location Emily Ann / Maggie Hays.  

New target At Maggie Hays West, Nickel has been intersected at the base of the WUU. 

Best results include:
PLJA075 28m @ 0.66% Ni, 187 ppm Cu from 20m including 4m @ 1.32% Ni, 134ppm Cu from 40m
PLJA076 8m @ 1.18% Ni, 143 ppm Cu from 40m
PLJA078 24m @ 0.88% Ni, 220 ppm Cu from 12m including 12m @ 1.16% Ni, 256ppm Cu from 20m
PLJA080 4m @ 0.52% Ni, 744 ppm Cu from 36m
PLJA081 7m @ 0.70% Ni, 588 ppm Cu from 40m (EOH).

Recording date: 12th July 2023

In this insightful discussion, Cory Belyk delves into the current state of the Uranium market and its implications for investors. We examine the factors affecting the market, such as the lack of contracting, geopolitical risks in uranium-producing regions like Kazakhstan, and the growing need for secure supply outside of Russia and China. We also explore the potential for a future uranium boom, with contrarian investors eyeing the market's dynamics. The conversation touches on the challenges faced by utilities in securing long-term supply and the critical role of enrichment and conversion in the fuel cycle. Furthermore, we discuss the potential for investment from oil companies and the importance of a holistic approach to the uranium sector. With insights into the opportunities and potential catalysts for change, this video should provide valuable perspectives for anyone interested in the future of uranium and its role in the global energy transition.

Interview with Hugh Agro, President & CEO of Revival Gold (TSX-V: RVG)

Our previous interview: https://youtu.be/Yd2aald8D30

Recording date: 12th July 2023

Revival Gold, a company focused on gold exploration and development, is making headway on the Beartrack-Arnett Gold Project situated in Idaho, USA.

Previously known as the biggest past-producing gold mine in Idaho, Beartrack-Arnett is set to potentially restart open pit heap leach gold production operations as suggested by a recent Preliminary Feasibility Study. The project enjoys the advantage of comprehensive existing infrastructure.

Since taking over the Beartrack-Arnett property in 2017, Revival Gold has recorded one of the most significant new gold discoveries in the United States in the past ten years. The vein of minerals at Beartrack stretches for more than five kilometers and remains unexplored both laterally and at greater depths. Additionally, the Arnett site also presents potential for further exploration in all directions.

Interview with Max Porterfield, President & CEO of Callinex Mines (TSX-V: CNX)

Our previous interview: https://youtu.be/CyQkM3ZVgWM

Recording date: 12th July 2023

Callinex Mines Inc. (CNX on TSXV and CLLXF on OTCQX) is making significant progress with its diverse portfolio of deposits rich in base and precious metals, situated in well-established Canadian mining regions. The company's attention is particularly on the Rainbow and Alchemist deposits within the Pine Bay Project in the Flin Flon Mining District, due to their rapid expansion. These deposits are advantageously located near existing infrastructure.

Another important asset within Callinex's portfolio is the Nash Creek Project in New Brunswick's Bathurst Mining District, known for its VMS richness. Based on a 2018 PEA, this project shows robust economic potential with a pre-tax IRR of 34.1% (25.2% after tax) and an NPV8% of $230 million ($128 million post-tax), assuming $1.25 Zinc.

In Newfoundland, Callinex owns 100% of the Point Leamington Deposit, which lies in one of Canada's most lucrative VMS and Gold Districts. The company has prepared a pit-constrained Indicated Mineral Resource of 5.0 Mt at 2.5 g/t AuEq, translating to 402 koz AuEq (which includes 145.7 koz gold, 60.0 Mlb copper, 153.5 Mlb zinc, 2.0 Moz silver, 1.5 Mlb lead). Additionally, it has an inferred pit-constrained Mineral Resource of 13.7 Mt at 2.24 g/t AuEq, equating to 986.5 koz AuEq (composed of 354.8 koz gold, 110.2 Mlb copper, 527.3 Mlb zinc, 6.2 Moz silver, 7.0 Mlb lead), and an out-of-pit Inferred Mineral Resource of 1.7 Mt at 3.06 g/t AuEq for 168.5 koz AuEq (65.4 koz gold, 13.3 Mlb copper, 102.9 Mlb zinc, 1.4 Moz Ag, 2.6 Mlb lead).

Hayden Locke, CEO of Marimaca Copper, joins Merlin Marr-Johnson for a discussion on how long it takes to build a copper mine post-discovery. Chapeau to Ivanhoe Mines and the great Kamoa-Kakula developed in a mere 14 years, with longer timelines much more common. Factors such as capex, infrastructure, complexity, and margin are covered. Hayden touches on the differences between how a major or a mid-tier company might approach a development decision.

Recording date: 6th July 2023

Nickel popped back up away from $20,000 level to $20,500 to $21,000 level.  Again, still expect some near-term weakness and break below $20,000, but nickel continues to be resilient.

Good news is earlier drop in nickel prices have continued to lead to “Great Compression” – sulphate discount dropped by more than half as sulphate prices increased as LME prices dropped and NPI discounts also shrank despite less than stellar stainless market with NPI prices dropping slightly and not following larger drop in nickel prices.

Grab bag of items

Clean Air Metals doing reset after having to restate resource.  Updated metallurgical test program consisted of locked cycle tests on a variety of composite samples with a range of head grades from both the Current and Escape deposits and delivered recoveries of 70.2% to 80.9% Platinum (Pt) and 74.0% to 86.9% Palladium (Pd) and copper recoveries from 89.9% to 96.3% and nickel recoveries from 55 to 57%. Testing ability to produce separate nickel-PGE and copper concentrates

Glencore Plc said on Monday it had proposed to buy the remaining stake in copper miner PolyMet Mining it does not already own for about $71 million. The Swiss commodity trader already owns 82.26% of PolyMet.  In June, The U.S. Army Corps of Engineers announced they are revoking NewRange's permit to develop its NorthMet copper-nickel mine, formerly known as PolyMet, near Hoyt Lakes. The Corps claims NewRange failed to meet EPA clean water standards.

Toyota discussed solid state battery by 2027: its “technological breakthrough” will resolve durability issues, allowing an EV powered by a solid-state battery to have a range of 1,200km and a charging time of 10 minutes or less.  People get worried that a new battery -  Solid state just refers to form of electrolyte doesn’t change which anode or cathode you would use.

Queensland State announced that it would invest A$245M (US$164M) into helping expand its critical minerals sector. The amount includes a fund of A$100M that will support new investment into mining projects in the region alone.  The new announcement states that the Queensland government will help mining companies in a multitude of ways. First, the state will allocate A$55M for investments to reduce rent for new and existing exploration minerals permits to A$0 for the next five years.  One of the main highlights of the announcement was that there will be a A$100M Critical Minerals and Battery Technology Fund, which will support new project investment.  Additionally, Queensland will also spend approximately A$75M to establish critical mineral zones, initially in the cities of Julia Creek, Richmond, and around Mount Isa, to help advance critical minerals projects. Along with these initial investments, Queensland will also establish an integrated office to oversee the critical mineral sector development and help attract international investment. The state government will also invest A$5M for critical minerals mining waste and tailings, as well as A$8M to fund scientific research including circular economy initiatives, with A$1M to be used for advance research and ESG.

Stellantis battery plant which had halted construction in Ontario, Canada as felt that government hadn’t lived up to matching IRA benefits. Province of Ontario agreed would provide up to $5 billion in tax breaks based on production over a 10-year term. He said the other $10-billion in tax breaks would come from the federal government. Ontario minister Vic Fedeli - "It's not like the incentive money that the province and the feds delivered to the battery company," he said. "We invested $500 million in capital. This is like a performance incentive or a tax break. It's not a cheque per se.

Horizonte Minerals Plc (AIM/TSX: HZM) (“Horizonte” or the “Company”), a nickel company developing two Tier 1 assets in Brazil, is pleased to announce that it has received its mining approval permits allowing it to commence mining. Araguaia Nickel Project Line 1 remains on-schedule for production in Q1 2024 with over 50% of the construction programme completed to date. FS for doubling production to 29ktpa on track for 2nd half 2023.

Posco Holdings announced earlier this week its plans to invest $93bn into battery materials, hydrogen and its green steel business by 2030.

Wyloo reached 90% ownership of Mincor and can now mandatory close to 100%.  Also made clear that not done doing nickel acquisitions.

Recording date: 13th July 2023

What’s been happening

We will soon have two US-listed SMR developers.  Oklo, an Advanced Fission Technology Company announced they will Go Public via a Merger with AltC Acquisition Corp. a special purpose acquisition company chaired by Sam Altman. The combined company will operate as Oklo and is expected to be listed on the New York Stock Exchange under the ticker “OKLO.”

The West has received its first boost in enrichment capacity after Urenco approved an investment to expand enrichment capacity by 0.7M SWU at their US site in New Mexico.

Closer to home (for Bannerman, at least) Rossing Uranium mine in Namibia announced that they would be switching to contract mining rather than owner operator, as part of its plan to extend production out to 2036. Beifang Mining Technology Services Namibia, will start mining Rossing Phase 4 in 2027.  Approximately 400 employees will need to find work with the new mining contractor or other mines.

Winner of the week 

Lotus Resources & A-Cap Energy have agreed to merge via a Scheme of Arrangement, under which Lotus will acquire 100% of A-Cap Shares. A-Cap shareholders will receive 1 new Lotus Share for every 3.54 A-Cap shares held on the Scheme record date. The merger combines two uranium projects both located in Africa – a production-ready asset, Kayelekera, with future large-scale growth asset, Letlhakane.

Bungle of the week

The Bungle this week is a collective award to the various parties around the world who are gaining leverage by serving up anti-science fear about the release of Tritium water from Fukushima.  This ranges from the usual tired old suspects (anti-nuclear types who long ago forewent any respect for science) to Korean trade unionists. 

This is despite an IAEA safety review concluding that Japan’s plan to release treated water stored at the Fukushima Daiichi nuclear power station into the sea are consistent with IAEA Safety Standards.

However, there is a serious side to this bungle as the hysteria may be used as a diplomatic tool by the Chinese, who are not terribly comfortable with the warming of diplomatic relations between Seoul and Tokyo.

Question of the week

‘What do you make of CNUC going back into Niger?’

Tweet of the week

https://twitter.com/fuecks/status/1678349409157775360?s=20

The English translation of his thread follows:

Dear people, I was a (rather active) nuclear opponent for decades. Now it's time to take note of a few facts: No other country shut down its nuclear power plants prematurely in the middle of the climate and energy crisis. The trend is towards extending the term./2

Numerous industrialized countries see nuclear power & renewables as complementary. Massive investments are again being made in R&D for the further development of nuclear energy. Whether this will lead to a new wave of investment remains to be seen. /3

There are still good reasons to decide against nuclear power. But this path is also associated with high costs and risks. Instead of praying down old certainties, we should re-evaluate things. The head is round so that thinking can change direction. /4

Addendum: I am well aware that the share of nuclear power in global electricity production is falling while the expansion of renewable energy is growing exponentially. Nevertheless, in view of climate change, we chose the wrong order with "nuclear phase-out first". /5

The primary goal must be to phase out coal, oil and natural gas. What complementary role nuclear energy will play in a climate-neutral energy system is an open question. In the EU + other industrialized countries, a combination of sun, wind, hydropower + nuclear power is emerging. /6

Moonshots & Fizzers

Will Canada become global leaders in Nuclear Energy? 

In the latest pro-nuclear development in Canada, the Ontario government announced support to advance the long-term planning and consultation work required to explore nuclear expansion options on the Bruce Power site.  It intends to create the largest nuclear power plant in the world with the addition of up to 4.8GWe to the plant’s already installed 6.2GWe capacity.

For the record, Canada is already a leader in many respects.  The only risk of a fizzer is from a relatively similar country and economy that seems to be going in precisely the opposite direction: Australia.